Buying Prescott Real Estate- Is it better than renting?
March 4th, 2009 categories: Home Buyers, Real Estate News
Should I buy Real Estate in Prescott or continue renting?
If you are going to live in Prescott for less than 2 years, renting is better than buying. However, if you are planning to stay put for more than a few years, this may be the perfect time to purchase a home. A recent article in the Wall Street Journal confirmed that recet drops in values and interest rates have made owning more beneficial than renting.
According to Green Street Advisors, a Real Estate consultancy group based in Newport Beach, Calif, “over the past 18 years, after-tax mortgage payments averaged 26% more than rent payments”. In 2006, at the height of the housing bubble, mortgage payments reached as high as 66% more than rent payments. By the end of 2008, average monthly rent for the largest 50 metropolitan areas was $1,045, compared with after-tax mortgage payments of $1,300, assuming a rate of 5.5% on a 30 year fixed mortgage. That means mortgage payments averaged just 24% more than rent payments, the narrowest gap since 2001.
This gap is important to consider, but there are other reasons, fun reason to buy a home.
1. You own your own place! You can do whatever you want, whenever you want.
Choose your own paint colors, tear down a wall, remodel the bathroom, jump on the bed. You are the boss.
2. Long-term equity appreciation. It may not seem like it right now, but values and prices in Prescott will be going back up. Don’t look back in 2013 and think “I should have bought a house in 2009″.
3. Buy low, sell high. Today, we are at the “Buy low” part of life. I’m not a fortune teller, but in 2013, I’m predicting that prices in Prescott will be higher than they are today.
4. Stability. No landlord will ever tell you, “you have to move”. Coming home to a place that’s “Your Home” feels good.
5. You are paying your mortgage, not your landlord’s. If you’re going to be paying rent somewhere every month, you should get the tax benefits for it, and ultimately own the home that you are paying for.
There are many other reasons to own a home. If you would like to discuss your qualifications to purchase a home, please call us at 928.778.4492 or 928.533.6377. Or e-mail us at info@thehuffmangroup.com
